Households and businesses in Cyprus should not expect electricity price reductions before 2027, according to George Petrou, Chairman of the Electricity Authority of Cyprus (EAC).

During a meeting of the Parliamentary Committee on Finance, Petrou was clear when questioned by committee members and the media, stating: "There will be no reduction in electricity prices for at least the next two years."

Petrou explained that electricity prices will remain unchanged unless Cyprus expands its renewable energy capacity, develops energy storage infrastructure, and introduces natural gas into its energy mix.

He emphasized the need for system upgrades, particularly with the arrival of natural gas and improved transmission infrastructure.

As Brief reports, to support this transition, the EAC has already acquired two critical components for the floating LNG regasification unit (FSRU) "Prometheus", though payment for these components has not yet been made.

Despite securing permits to develop solar parks, the EAC is struggling to find suitable land for these projects.

Regarding electricity storage, the tendering process for storage systems is in its final stages and will soon be launched.

Petrou also announced that the EAC will conduct a study on the potential impact of the Cyprus-Greece-Israel electricity interconnection via the Great Sea Interconnector (GSI). This study, with an estimated cost of €350,000, will assess both the economic and technical implications of the project for the EAC.

The EAC’s 2025 budget includes total expenditures of €1.9 billion and projected revenues of €1.4 billion.

• €981 million will be allocated for fuel purchases, electricity procurement, and market operations.
• €564 million will be spent on fuel costs alone.
• The projected cash deficit of €245 million will be covered through loans and internal funding.
• An additional €250 million is allocated for unforeseen fuel, electricity, and market operation expenses.

Petrou noted that capital expenditures for 2025 will increase by €148 million compared to 2024, reaching €357 million. These funds will support:

• New power generation and storage facilities at the Dhekelia power station.
• Upgrades to production capacity and pollution control technologies.
• System monitoring and operational improvements at Vasilikos power station.
• Enhancements to the electricity transmission and distribution network, including the installation of smart meters.

Additional budget allocations include:

• €42 million for repairs, maintenance, and operational supplies.
• €14 million for third-party project execution.
• €6.5 million for IT system procurement and maintenance.
• €5.3 million for insurance coverage.

The EAC’s primary revenue source remains electricity sales, projected to generate approximately €1.2 billion.

Additionally:

• €210 million will come from market operator charges, including energy sales, grid usage fees, ancillary services, and consumption metering.
• €24 million is expected from the sale of processed water.
• €15 million will come from various non-regulated activities.